The Westaim Corporation (WED) Q4 2024 earnings summary

Executive summary

• Q4 2024 saw a net loss of $21.3M versus a profit of $35.1M in Q4 2023, with diluted loss per share of $0.99 compared to earnings of $1.57 last year.

• FY 2024 resulted in a net loss of $16.2M, down from a profit of $183.9M in FY 2023, with diluted loss per share of $0.75.

• Completed a 6-for-1 reverse share split and redomiciled from Alberta, Canada to Delaware, USA.

• Arena's AUM and Programmatic Capital grew to $3.4B at year-end and reached $4.2B in Q1 2025.

• Operating results were impacted by increased expenses, forward planning costs for Proposed Transactions, and a non-cash downward valuation adjustment.

Financial highlights

• Q4 2024 net loss attributable to Arena was $11.5M, compared to net income of $1.1M in Q4 2023.

• Q4 2024 revenue was $1.1M, down from $53.3M in Q4 2023; full-year revenue was $38.6M, down from $212.8M in 2023.

• Net expenses rose to $25.6M in Q4 2024 from $16.1M in Q4 2023; full-year expenses were $58.1M, up from $26.6M.

• Shareholders' equity stood at $497.4M at Q4 2024, down from $518.3M at Q4 2023.

• Book value per fully diluted share decreased to $22.88 at December 31, 2024, from $22.98 a year earlier.

• Westaim ended Q4 2024 with $301.9M in cash, up from $135.0M at year-end 2023.

Outlook and guidance

• Proposed Transactions with CC Capital expected to close in early April 2025, with AGM scheduled for June 12, 2025.

• Arena's AUM and Programmatic Capital continued to rise post-year-end, reaching $4.2B in Q1 2025.

• Future growth is expected to deliver significant operating leverage as fee-paying AUM increases, with a focus on insurance asset management.